Finnair's Q2 revenue rises on healthy travel demand, 2026 guidance lifted
Finnair's Q2 revenue rises on healthy travel demand, 2026 guidance lifted
Overview
Finland airline's Q2 revenue rose 16.4% yr/yr on strong travel demand and higher unit revenues
Comparable operating result rose nearly eightfold to record high, aided by cargo and ancillary revenue
Company raised 2026 revenue guidance but warns of risks from fuel prices and geopolitical instability
Outlook
Finnair sees 2026 revenue at EUR 3.4-3.5 bln and comparable operating result at EUR 120-190 mln
Company plans to increase total capacity (ASKs) by about 1% in 2026
Finnair expects passenger numbers in own traffic to grow by about 7% in 2026
Result Drivers
STRONG TRAVEL DEMAND - Co said healthy travel demand and a 7.6% rise in passenger numbers supported revenue growth
HIGHER UNIT REVENUES - Co attributed higher unit revenues to temporary capacity changes in the market, especially in Asian traffic
CARGO AND ANCILLARY REVENUE - Solid demand for cargo services and strong growth in ancillary revenue further supported results
Company press release: ID:nWkr5WlQJJ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| EUR 916.70 mln |
|
Q2 EPS |
| EUR 0.28 |
|
Q2 Adjusted EBIT |
| EUR 78.40 mln |
|
Q2 Adjusted Free Cash Flow |
| EUR 182.60 mln |
|
Q2 EBIT |
| EUR 86.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", no "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the airlines peer group is "buy."
Wall Street's median 12-month price target for Finnair Oyj is €3.80, about 21.4% below its July 21 closing price of €4.84
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
July 22 - Cathay Pacific flags stronger first-half profit on travel, cargo demand
July 21 - Fuel costs cloud Alaska Air's outlook even as demand remains strong
July 20 - Ryanair profits slump as Iran war dampens fares, hikes fuel costs
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)